A contract to enter into a contract is not enforceable. when contract Essay

A contract to enter into a contract is not enforceable. when contract is subject to Negotiation, it is too uncertain to have a binding force - Essay Example ses the Courts have generally demonstrated a tendency to render a decision on the basis of interpretation of such agreements, taking into account all the circumstances of the case. In the case of contracts where the price for a service or transaction is to be determined, this element of uncertainty has become even more relevant. The extent to which Courts have allowed recoveries in some cases has been determined by the extent to which damages may be suffered by one party, but when there is uncertainty introduced into the contract or pre-contractual agreement, such recoveries may be difficult. In the case of Courtney and Fairbairn Ltd v Tolaini Bros(Hotels) Ltd2 the appellants were property developers and had secured finances for the defendants to develop a hotel. Prior to the appellants securing the monies, they had entered into negotiations with the defendants; there was a written agreement between them that the defendants would negotiate to use the services of the appellant to develop the hotel property. However, when the appellant actually secured the finances, the defendants went ahead and hired different property developers rather than using the services of the appellants. This led to the legal action. Lord Denning, in providing the judgment on the case, pointed out that there had been some preliminary steps taken by both parties as an act of good faith in pursuance of their negotiations. Mr. Courtney of the appellants found a person willing to finance the property development, while the defendant Mr. Toliani appointed a quantity surveyor with a view to negotiating the price with Mr. Courtney. There was a written agreement between them; however Lord Denning did not equate this to a contract. He held that there was no actionable contract between the two parties because the agreement between them was only an agreement â€Å"to negotiate fair and reasonable contract sums†, and no agreement could be found â€Å"on the price or on any method by which the price was to